San Jose Multifamily Investment
For Sale
$2,150,000
354 5th Street, San Jose, CA 95112
Well-maintained 8-unit property near Japantown, Downtown San Jose, and SJSU.
Property Size3,904 SF
Price / SF$550.72
Days on Market164
Property Features for 354 5th Street
General Information
Standard status
Active
Size
3,904 SF
Property subtype
Commercial
Amenities
Carpet Flooring
Carport(s)
Coin Operated Laundry
Composition Roof
Double Pane Windows
Sprinklers - Lawn
Tile Flooring
Uncovered Parking
Vinyl / Linoleum Flooring
Wall Furnace Heating
Building Details
Year Built
1956
Listing Agency:
COMPASS
(650) 941-1111
Listed By:
JOSEPH YEN · License #01136969
Source:
Corcoran
Added: Mar 2
Changed: Aug 8
Last Checked: Aug 12 at 6:51AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of COMPASS
Investment Insights
Based on property information with market context.
This well-maintained 8-unit multifamily property is located in central San Jose, a few blocks from Japantown, Downtown San Jose, and San Jose State University. The property consists of eight 1 bed/1 bath units, offering rental income potential. Features include double pane windows and newer water heaters. The property provides covered parking spaces with tenant storage lockers, and a coin-operated laundry room. Situated in the heart of Silicon Valley, the location offers proximity to major tech employers, retail, restaurants, and San Jose Mineta International Airport. Public transportation and Highways 87/101/280/880 are easily accessible. The property size is 3,904 square feet, presenting a strong cash flow opportunity.
Key Highlights
- Strong cash flow from eight 1 bed/1 bath units.
- Prime location near Japantown, Downtown San Jose, and San Jose State University.
- Convenient access to major highways (87/101/280/880) and public transportation.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$81,203
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.78%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,624,060
$1.6M
Cap Rate 7%
$1,160,043
$1.2M
Cap Rate 9%
$902,256
$902.3K
Market Conditions
NOI Build-Up for 3,904 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$154.6K $39.60/SF
− Vacancy
−$7.0K −$1.78/SF
EGI
$147.6K $37.82/SF
− OpEx
−$66.4K −$17.02/SF
NOI
$81.2K $20.80/SF
Area
San Jose, CA
Vacancy
4.50%
Lease Rate
$39.60 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,624,060
Cap Rate 7%
$1,160,043
Cap Rate 9%
$902,256
Alternative Uses
Best Use
Apartment 5plus
$1.16M
$1.02M – $1.35M
NOI $81,203 @ 7.0% cap · market cap 3.78%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.36M
$2.06M – $2.75M
NOI $165,042 @ 7.0% cap · market cap 7.68%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
4,827
Businesses Nearby
Explore this area
Business Placement
Demographics for 95112, CA
60,754
Population
22,969
Households
2.6
Avg Household Size
33
Median Age
39%
College-Educated
82%
High-School Grad
7.3 sq mi
ZIP Area
8,322
Density / Sq Mi
$89,649
Median Household Income
$45,690
Median Earnings
$2,095
Median Rent
$956,300
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Well-maintained 8-unit property near Japantown, Downtown San Jose, and SJSU.
Where is this apartment building located?
The property is located at 354 5th Street San Jose, CA.
What is the asking price?
The asking price for this property is $2,150,000.
What are key features of this property?
This property features: Strong cash flow from eight 1 bed/1 bath units.; Prime location near Japantown, Downtown San Jose, and San Jose State University.; Convenient access to major highways (87/101/280/880) and public transportation.
